Unemployment in the United Kingdom reaches new four-decade low

17 April, 2018, 18:36 | Author: Brenda Erickson
  • UK weather Met Office chart

The ILO unemployment rate unexpectedly fell from 4.3% to 4.2%, which could signal a further uptick in pay growth. "Markets are now pricing in an 85 percent chance of a rate rise".

In total, there were 1.42 million unemployed people, which is 16,000 less than for September to November and 136,000 fewer than recorded previous year.

That probability is evident in the performance of the pound which has rallied this year, particularly in the past few trading sessions. "More interestingly, the pound is now also the best performing G10 currency versus the euro", says Derek Halpenny, European head of global markets research at MUFG.

A worse-than-expected decline in German investor sentiment has today prevented the Euro to Pound (EUR/GBP) exchange rate from capitalising on the lacklustre Sterling response to the latest United Kingdom wage data. He could be right. Meanwhile, the British currency actually posted a minor loss against the Euro a year ago.

But the good news is that average weekly earning for employees in the United Kingdom in real terms (that is, adjusted for price inflation) increased by 0.2% excluding bonuses, and 0.1% including bonuses.

Trump tweets "Mission Accomplished!" after Syria bombing
The US is "locked and loaded" if Syria uses chemical weapons again, America's United Nations envoy Nikki Haley said today. Prof Gillespie says the USA and its allies could have taken a different approach like imposing sanctions.


Tuesday's data comes just weeks ahead of the May interest rate decision from the Bank of England May that is widely expected to yield another 25 basis point increase in the Bank Rate, which would leave the UK's main interest rate at 0.75%. Instead, wage growth is edging up nicely as the degree of mismatch between the skills of the remaining workers and the skills demanded by firms increases'.

Anticipation of a rate hike mounted after the BoE warned in February that it could raise rates further and faster than markets were gave it credit for if the United Kingdom inflation picture evolved in line with its most recent forecasts. But Shaw said a pickup in growth in pay excluding bonuses to 2.8 percent from 2.6 percent in the three months to January - in line with the Reuters poll and the strongest reading since early 2015 - would give a green light to the BoE to raise rates.

Speeches from US Federal Reserve officials later this afternoon and this evening could create overnight volatility for the Euro to Pound Sterling (EUR/GBP) exchange rate, as changes to the US monetary policy outlook could create momentum for United States dollars and push EUR in the opposite direction.

Tuesday's wage data adds fuel to the argument that the Bank of England will likely increase interest rates at the next meeting of its Monetary Policy Committee in the first week of May.

Recommended:



Popular

New SRQ carrier Allegiant has safety record scrutinized on '60 Minutes'
The Las Vegas-based company reported that last month, it had 1,356,305 scheduled passengers, up from 1,143,571 in March of 2017. John Goglia: "I've encouraged my friends, my family, and myself not to fly Allegiant". "We're happy they fly out of Owensboro".

US, allied strikes aimed at Syria's chemical weapons
The U.S. has vowed to also squeeze Syria's allies Russian Federation and Iran. The United States and its satellites are trying to undermine worldwide law.

Jets ready for tougher test as series shifts to Minnesota
The concept of a whiteout was less fun for the Jets come Saturday, as they tried to make their way to the Twin Cities for Game 3. If the Wild doesn't want this series to end the way those did, this is a must win. "It's gonna be big", Eric Staal said.

Zinedine Zidane wary of Malaga as Real Madrid return to LaLiga action
The Portugal star has continued that form and has now scored an incredible 25 goals in his last 14 outings for his club. Following their departure from the Champions League, the ESPN FC panel rate the success of Barcelona's season so far.

Poirier finishes Gaethje in another Fight of the Night performance
Poirier improved to 7-1 with one no contest since his 2014 TKO loss to former two-division champion Conor McGregor. He survived and won with a big left hand, moving a step closer to his title shot.

Mourinho sends strong message to Martial and Rashford over their futures
The forward has played 97 matches as both a starter and a substitute since the Portuguese manager replaced Louis Van Gaal in August 2016.

More Than 200 Million Eggs Recalled After Salmonella Outbreak
A recall of 206,749,248 eggs has occurred in the USA , following 22 reports of illness linked to salmonella contamination. Healthy individuals can experience fever, diarrhea, nausea, vomiting and abdominal pain.

Police Arrest Man Carrying Loaded Revolver
A York man is facing charges following a three-month investigation that police say involved controlled purchases by officers. Neither the Cleveland police officers nor the Decker Avenue residents were hurt in the shooting, Ciaccia said.

Starbucks CEO apologizes after arrests of 2 black men
The video shows several police officers in bicycle helmets, and what appears to be a uniformed supervisor inside the coffee shop. Addressing the issue forthrightly is important in part because Starbucks already has a complicated track record on racial issues.

We didn't hand title to Manchester City - Mourinho
It's important we continue to fight and work hard for each other. "We deserve top be punished, but the defeat was too heavy". Photo Pep Guardiola has guided Manchester City to its third title in seven seasons.